Xiamen Port regained decline Credit Suisse to increase target price to 1.8 yuan

Xiamen Port, the bottom of the rally this morning, the share price is now recovered flat at HK $1.69, deal 2.14 million shares.　　Credit Suisse issued a report saying it maintained the unit's neutral rating, but raised its target price from HK $1.11 to HK $1.8 to reflect better medium-and long-term growth prospects, with higher permanent growth rates and lower weighted capital costs (down from 11.7% to 10.7%), compared to a market premium of 7% per cent. The Xiamen port, the best performing stock in the port sector this year (up 89.9%), was driven largely by news of China's planned development of a pilot zone to develop economic cooperation with Taiwan, and its valuation was extremely low before the surge, Credit Suisse added. Xiamen Port's geographical location makes it a good representative of Cross-strait direct, but this is a very long-term positive, Credit Suisse still has a cautious view of its short-term prospects, because of oversupply, increased competition.